Types of Funds

There are two ways in which charitable gifts may be arranged. One arrangement is to set up a gift as a permanent endowment. With this arrangement the principal is invested, with only the investment earnings used to make grants – thus assuring the perpetual use of the gift. The other arrangement is know as nonpermanent with the principal and any interest earnings available to make grants. This arrangement is often used to meet the funding needs of certain capital projects.

The following types of funds can be created with the Nebraska Community Foundation as permanent endowments, nonpermanent funds or a combination of these two arrangements.

Unrestricted Funds

Your clients may wish to make a gift to one of the Nebraska Community Foundation’s affiliated funds unrestricted fund. With this type of gift your clients place their trust in the Fund Advisory Committee of the affiliated fund to determine where grant money is needed the most. Gifts to unrestricted funds provide the most flexibility for making grants in support of critical needs in communities and charities.

Donor-Designated Funds

Your clients may designate specific charities or communities to receive their gifts. This type of fund is arranged only as a permanent endowment, thus guaranteeing income for the charity or community in perpetuity.

Donor-Advised Funds

With this type of fund your clients are actively involved in the distribution of their gifts by making grant recommendations to support different charities, communities or charitable activities that are of interest to them.

Brochures are available with information about the benefits of establishing a donor-advised fund.

Some private foundations have chosen to change their legal status and become affiliated funds of the Nebraska Community Foundation. By doing so, they often become more time and cost-efficient.

Find out more about converting a private foundation to an NCF affiliated fund.